ANALYSIS
NQ100 Finds Support from PPIApr 14
Pound Hits Historic Low Against Dollar
In the September meeting of the Bank of England (BoE), where it increased interest rates by 50 basis points, we saw a selling pressure on the pound after it announced that the recession in the country started in the third quarter. As the pound tested its historical low against the dollar with this pressure, the concerns of destabilization in the British markets accelerated the sales. Subsequently, speculations that the BoE would hold an extraordinary meeting were not permanent, although rallied the pound somewhat. At this point, the permanence of the parity below 1.0900 is critical. With the consolidation of sales in the closings that can be achieved below this level, losses may continue until 1.0550 support behind 1.0665. 1.0420 will be observed below 1.0550. The resistance of 1.1040 can be followed in the possible transition above 1.0900.
